UPDATED: More than 100 jobs at risk as Mustang Marine faces administration

MORE than 100 jobs could be at risk after Mustang Marine – a Pembroke Dock-based boat building and ship repair facility - announced it could enter administration later this week or early next week.

The company, which was facing closure before Christmas, has been in difficulties since November when directors reported significant losses to its shareholders.

It was hoped that a rescue package, involving the Welsh Government, Milford Haven Port Authority and “an external third party”, would ensure the company’s long-term future.

But directors are now looking for other funding after the third party’s offer was withdrawn. An announcement was made to staff yesterday (Wednesday).

Mustang Marine interim managing director Stewart Graves said: “Unfortunately last week, after completing its review of the business, the external party withdrew its offer and without that party the long-term funding package could not proceed.

“The directors over the past few days have, with their professional advisers, sought other funding and are still trying to find a rescue package to secure the future of the business.

“It’s possible the company will go into administration later this week or early next week if a rescue package cannot be found.”

Mr Graves confirmed the company is “currently taking professional advice from Grant Thornton.”

Only last November economy minister Edwina Hart opened Mustang Marine’s new £1.5m boat building construction hall at Pembroke Port.

Port of Milford Haven chief executive Alec Don said the port, which is a trust port and a 50% shareholder in Mustang Marine, was “deeply concerned” and would continue to work towards a solution with the company and other stakeholders.

He added: “We understand this situation is causing anxiety for the staff at Mustang. We need to remain positive that Mustang Marine will find a way through current challenges and that it will come out of this as a reinvigorated business with a sound plan.”

Preseli Pembrokeshire MP Stephen Crabb said he was “bitterly disappointed”. He added: “The failure of Welsh Minsters and the Port to reach agreement has huge ramifications for Mustang as a business, the workers and their families and those local Pembrokeshire companies who are still owed large sums of money by Mustang.

“The Port Authority invested in Mustang with a fanfare two years ago providing the strength of its reputation and balance sheet to boost the ship builder. It is galling that local companies could be left with huge unpaid debts because this investment has now turned sour.”

Mr Crabb said the port has an obligation to see that all small Pembrokeshire businesses owed money by Mustang Marine are repaid.

A Welsh Government spokesman said: “The Welsh Government will continue to work with the company and third parties to seek to secure the long term viability of the company.”

Comments

malcolm calver
8:40am Thu 27 Feb 14

Surely when Edwina Hart opened the boat building facility in November she would have asked questions regarding the financial viability of the company.
I would ask if this company has received taxpayers financial aid lately and if so how much

Surely when Edwina Hart opened the boat building facility in November she would have asked questions regarding the financial viability of the company.
I would ask if this company has received taxpayers financial aid lately and if so how muchmalcolm calver

Surely when Edwina Hart opened the boat building facility in November she would have asked questions regarding the financial viability of the company.
I would ask if this company has received taxpayers financial aid lately and if so how much

Score: 14

Gogledd
9:41am Thu 27 Feb 14

sadly Malcolm I have to agree with you my thoughts exactly. A very sad day though and very sorry for all the businesses who are owed money too..a bad day for Pembs if this goes, sorry for all the workers and families but its a sign of the times and an indication of the hard times and economic stagnation here in West Wales not helped by lack of commitment by the Welsh Government who are only interested in Cardiff and neighbouring counties.

sadly Malcolm I have to agree with you my thoughts exactly. A very sad day though and very sorry for all the businesses who are owed money too..a bad day for Pembs if this goes, sorry for all the workers and families but its a sign of the times and an indication of the hard times and economic stagnation here in West Wales not helped by lack of commitment by the Welsh Government who are only interested in Cardiff and neighbouring counties.Gogledd

sadly Malcolm I have to agree with you my thoughts exactly. A very sad day though and very sorry for all the businesses who are owed money too..a bad day for Pembs if this goes, sorry for all the workers and families but its a sign of the times and an indication of the hard times and economic stagnation here in West Wales not helped by lack of commitment by the Welsh Government who are only interested in Cardiff and neighbouring counties.

Score: 8

Tttoommy
1:49pm Thu 27 Feb 14

the Welsh Senedd like Jamie Adams seem to know very little about the real world, business and finance

the Welsh Senedd like Jamie Adams seem to know very little about the real world, business and financeTttoommy

the Welsh Senedd like Jamie Adams seem to know very little about the real world, business and finance

Score: 5

Pembsfan
9:33am Fri 28 Feb 14

This is terrible news for the county, a demonstration yet again of a business that has expanded far too quickly, and outreached itself. It was reported in The Herald three weeks ago that this was afoot, and that they had been supported financially by the Port Authority. It is a sad and worrying time for the employees.

This is terrible news for the county, a demonstration yet again of a business that has expanded far too quickly, and outreached itself. It was reported in The Herald three weeks ago that this was afoot, and that they had been supported financially by the Port Authority. It is a sad and worrying time for the employees.Pembsfan

This is terrible news for the county, a demonstration yet again of a business that has expanded far too quickly, and outreached itself. It was reported in The Herald three weeks ago that this was afoot, and that they had been supported financially by the Port Authority. It is a sad and worrying time for the employees.

Score: 4

Penfro
10:40am Fri 28 Feb 14

Really sad news for those families affected and this will not be just those directly affected but other companies too. However, does Stephen Crabb MP know nothing about the concept of limited liability? The Port company is under no 'obligation' whatsoever. It invested in Mustang and will probably lose its investment if that company goes into liquidation. But its liability is 'limited'

Really sad news for those families affected and this will not be just those directly affected but other companies too. However, does Stephen Crabb MP know nothing about the concept of limited liability? The Port company is under no 'obligation' whatsoever. It invested in Mustang and will probably lose its investment if that company goes into liquidation. But its liability is 'limited'Penfro

Really sad news for those families affected and this will not be just those directly affected but other companies too. However, does Stephen Crabb MP know nothing about the concept of limited liability? The Port company is under no 'obligation' whatsoever. It invested in Mustang and will probably lose its investment if that company goes into liquidation. But its liability is 'limited'

Score: 0

PembrokeshireMan
8:50am Mon 3 Mar 14

I don't suppose any of those in that photo will see any real financial hardship as a result of this failure.

I don't suppose any of those in that photo will see any real financial hardship as a result of this failure.PembrokeshireMan

I don't suppose any of those in that photo will see any real financial hardship as a result of this failure.

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